Wednesday, January 25, 2017

Wall Street: big new parade bullish, Dow 20.082. – The Express

The ‘sherpas’ have opened up the portal of the rise: after carefully content of the Dow Jones under 20,000 since the 13th of December last, so suddenly the green light that everyone was waiting for.

The Dow Jones (+0.8% 20.068 Pts), is extremely rare, has even opened a ‘gap’ at the top of the 19.949 Pts (before capping to 20.082). New ‘carton’ of records on Wall Street, with a ‘S&P’ to 2.298 (+0.8 per cent, close to the zenith of the 2.300), a Nasdaq, which jumped from +1% to 5.656), Russel-2000 (same difference) who returns to 10Pts of his absolute record (1.393 Pts)… while the VIX registered a new historic low to 10.80.

What euphoria… and what a blank in regards to the economic news and geopolitical.

This must be the perfect illustration of the adage: no news is good news !

And of course, it is then necessary to construct a whole discourse rationalizing to explain that the ‘market’ pays for the 2nd time in 2 months, the hope of a revival, the reduction of taxes, removal of regulations which restrict banks’ (they have already picked up +40% in 10 weeks). Other commentators may a little convincing, ‘it is thanks to the good quarterly’… which Wall Street did not last 15 days (and all of a sudden the experts come out with their +15% of profits in 2017, with the help of tax cuts).

one of The stars of the day was Boeing (+4,4%), which hopes to increase its rate of deliveries in 2017.

The Nasdaq was boosted by the ‘biotechs/pharmas’ with Gilead (+2,3%), Incyte (+2,2%), Vertex +3.6% and Intuitive Surgical +5.5 per cent.

The champion of the increase in all categories was Seagate with profits up by 36% to expectations, and that flies out of +14%.